Solana and Cardano are listed as tradable digital assets in Indonesia. SOL and ADA experienced price recoveries despite persistent downtrends.
Solana [SOL] and Cardano [ADA] have found themselves embroiled in scrutiny from the US Securities and Exchange Commission. However, a ray of hope emerged from recent events in Asia, which could offer some relief for assets and their owners. While the regulatory situation in the US remains uncertain and unclear, the news from Asia brings a new breeze of optimism.
Solana and Cardano Find Relief in Asia
In a remarkable turn of events, Solana and Cardano were classified as securities by the US Securities and Exchange Commission. This caused a significant hit to their prices and left their future uncertain.
However, a recent development in Asia, particularly Indonesia, has shed a ray of hope on the situation. A WuBlockchain report revealed that the Indonesian government designated SOL and ADA as tradable assets. This signaled a contrasting outlook, as compared to the US.
This announcement from Indonesia brings several positive implications for Solana and Cardano. First, it would give cryptocurrency traders within the country the freedom to trade these assets without the same level of scrutiny that the US faces.
Second, it provided a degree of regulatory clarity that was previously lacking, which could encourage increased business activities. Surprisingly, the Indonesian government has listed 501 cryptocurrencies, encompassing the majority of assets classified as securities by the US SEC.
Furthermore, the Indonesian news offered renewed optimism for SOL and ADA and their respective headlines. It presented a favorable business environment and indicated a divergence of regulatory perspectives between different regions. This could affect the market dynamics of these cryptocurrencies.
Immediate reaction?
Analysis of the active user metric on DefiLlama showed interesting trends in user activity for Solana and Cardano. Starting with Solana, there was a notable increase in active users during May, although the numbers subsequently experienced a decline.
On average, the network maintained approximately 100,000 active users. Despite the news of the SEC’s involvement, which usually puts a damper on user engagement, engagement with Solana’s network remained relatively strong. So far, there were around 93,000 active users.
Shifting the focus to Cardano, the active direction metric on DefiLlama revealed a more fluctuating pattern. The number of active addresses experienced peaks and troughs over time. However, there has been a decline in active addresses recently, with approximately 48,000 active addresses registered.
Solana and Cardano Price Trend
Examining Solana’s daily time frame chart, a noticeable downtrend could be observed. However, there was currently a recovery underway, characterized by consecutive uptrends.
Recently, SOL was trading around $15.7, seeing a slight increase in value. Despite this positive momentum, the overall trend for the asset remained bearish, as indicated by its Relative Strength Index (RSI).
Similarly, a significant drop in its price could be observed on Cardano’s daily time-frame chart. However, like Solana, ADA was also currently in the process of price recovery.
So far, ADA was trading around $0.26, reflecting a slight increase in value. Despite the recent price rise, ADA’s RSI indicated that it was still in the oversold zone.
By Audy Castaneda
